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April 10, 2004
Welcoming
versus Blocking Innovation
by Tibor R. Machan, Ph.D.
One
need not await yet another multimillion-dollar
study to learn that the Internet has improved
efficiency in innumerable areas of human
productivity. What is not so widely appreciated,
judging by all the complaints one hears about
outsourcing -- taking jobs that have been done in a
given location and relocating them someplace else
where labor is less expensive -- is the incredible
volatility that exists in the job market as a
result of the Internet.
Consider the situation of an author of books who
in the past used a typewriter to produce reams of
pages of work which then had to be reworked by
hand, then taken to the post office and sent off to
be copy edited and returned via the snail mail for
checking, then sent off again to the publisher,
where it would be set in typeface and the galleys
then would be returned to the author who would
proof read them and once done, send them to the
person doing the index -- and the story goes on,
with what now seem to be obsolete and tedious steps
slowly moving to the final production of the
work.
What happens today in most cases? The initial
manuscript is created on a PC where it is easily
edited, with sections moved around, sentences
reworked with no need to discard actual pages of
text, with no need for pencils and white-out
correction fluid. Most of the editing can be done
by the author, who can also make improvements in
the text as it is being reworked. Then the
manuscript is uploaded into an email as an
attachment and sent instantaneously to the editor
at the publishing house, bypassing the mails, thus
not utilizing the driver who would have carted it
to some airport where others would have loaded it
into some cargo plane, etc., and so forth -- you
get the picture, I hope.
In short, all kinds of hands have been laid off
as a result of the widely championed as well as
denounced electronic gadgets. Talk about a labor
saving revolution! Talk about down
sizing!
Yet, of course, that is just a fraction of the
picture, as it is with any kind of outsourcing,
domestic or foreign. More closely looked at, what
emerges is that with the speed-up of production
more work can be produced, more books get
published, more editorial task can be accomplished.
With the money saved from not having to spend so
much on postage and editing and proofing and with
money earned from more books being produced and
sold, savings and earnings can be spent on
different items that will need to be produced.
Those who used to work driving the trucks to the
airport, just to focus on one fragment of the
eliminated process, are now able to get jobs in
those industries that are funded from the spending
of the new savings and earnings.
What's more, the process continues without any
end in sight in many other lines of work across the
globe! As with everything new, some old things will
be replaced but even that has to be qualified. Just
as TV didn't displace the movies, just as video
cassettes didn't displace the multiplex cinema,
just as CDs didn't quite do away with LPs, even
cassettes, so anything else that's new tends mainly
to add to the array of available goodies human
beings love to use for their various types of
benefits. Even the famous "horse and buggy" didn't
quite die out, given the incredible increase in the
human use of horses for athletic and recreational
purposes.
Many old things come back in somewhat revised
fashion, even if some do disappear for good. In the
latter case those who specialized in producing them
will either learn another skill, move to where the
change hasn't yet taken place, or, if they have
reached a certain age, retire and make room for the
new generation of producers. The goods that have
been replaced will often enter either the used or
the antique market place, often with quite a span
of extended duration there, requiring all the work
produced by those caring for them in repair shops
and such.
In a relatively free market environment, these
matters go on without a lot of fuss. Common sense
tells anyone (who will but consult it) that this is
how things ought to go and people will make
preparations to cope accordingly. Only when various
groups go to the government to get some kind of
special favors, by way of subsidies, protectionism,
or price supports, does the situation begin to go
seriously awry, with the whole process becoming
politicized and creating, in its wake, hostilities
and feelings of victimization all around.
Moreover, there will also be the accompanying
embarrassment on the part of those who gain
political protection for their specialization that
they themselves often take full advantage of
innovation and, yes, outsourcing in numerous
regions of the marketplace as they look for new and
better ways of doing what they want to do in their
lives.
Machan
Archive
Copyright © 2004 Tibor Machan and reprinted
with permission.
Tibor Machan holds the Freedom Communications
Professorship of Free Enterprise and Business
Ethics at the Argyros School of Business &
Economics, Chapman University, CA. A Research
Fellow at the Hoover Institution, Stanford
University, he is author of 20+ books, most
recently, Putting
Humans First: Why We Are Nature's Favorite.
More
Books by Dr. Machan in The Academy
Bookstore
Dr. Machan can be reached at: machan@chapman.edu
and machatr@home.com
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